Easy Guide to Analyzing Airbnb Property Revenue
With this all-time high interest rate, more and more rental property owners are looking for a way to increase their rental income. If you own a residential property, short-term rental gives you the highest cash flow. Multi-family (HMO) or mid-term rental comes second.
Airbnb is the best platform to list your short-term rental, VRBO comes second. That’s why it’s important to know how to analyze Airbnb property using short-term rental calculator.
Here’s a summary on how to analyze an Airbnb property
- Using an Airbnb Calculator
- Analyzing Premium Factors
- Conducting Market Analysis
- Estimating Costs
- Contact Us for Detailed Reports
Using an Airbnb Calculator
To estimate your potential Airbnb revenue:
- Input the property address.
- Add details like the number of bedrooms and bathrooms.
- Access a free version of the analysis report.
Airbnb Calculator
Instantly see your Airbnb’s estimated revenue with the leading Airbnb profit calculator in the short-term rental industry. Discover your Airbnb earnings potential.
Tips:
- Hide Irrelevant Listings: Click the eye icon (👁️) to exclude listings from the revenue calculation.
- Add More Comparables: Click “Add more comps” to include up to 40 more listings for comparison.
- Airbnb Property Analysis: You can also click on properties on the map to see their revenue history.
Analyzing Premium Factors
Number of Bedrooms
Unlike hotel rooms, every short-term rental is unique. That’s why your estimated revenue can vary depending on amenities, location, or even guest reviews. Now, it’s time to head over to Airbnb Analyzer to do a more in-depth analysis.
In the dashboard, take a look at the Overview section in Market Details. You can compare how occupancy rates / revenue / daily rates of different numbers of bedrooms, property types, review ratings, and so on. In the example of Miami Beach, 6+ bedrooms have a lower average occupancy rate than smaller-sized properties.
Location Analysis
Location significantly impacts revenue. Use the “Neighbourhood analysis” feature on the map to see occupancy rates represented by color intensity.
Tip: Filter for beachfront properties to check their earnings.
Amenity Analysis
Use the amenities filter to see listings with specific amenities. For instance, in Mexico City, listings with AC charge a 50% premium. Verify this by checking statistics of listings with and without AC.
Tip: Check popular amenities like pools and hot tubs, as they are common in short-term rentals.
Conducting Market Analysis
Besides cash flow, evaluate if the market is a good investment by examining:
Home Affordability: Compare property price or rent growth to income growth. Favorable markets have property price growth supported by income growth.
Demographic Trends: Look at population trends and compare them across markets. Here’s an an example on Google Sheets.
Estimate the expenses
Here, we’ve written a blog about the complete list of host expenses. Make sure to check this out!
Contact Us for Detailed Reports
If you want this analysis report for your desired markets, please contact [email protected]. Let us know the list of markets for which you want us to do investment analysis. This is a paid service. If you include the link to this blog, it’ll help us respond faster.
